According to early estimates, the need for construction in 2022 will be $29.8 billion
The Building and Construction Authority (BCA) believes that construction demand will “remain robust” by 2023. According to a news release it forecasts that the cost of contracts for construction that were awarded this year to be between $27 billion and $32 billion, which is similar to last year’s forecast.
Terra Hill developer Hoi Hup and Sunway Development have jointly acquired Terra Hill Condo for S$371 million ($276.1 million) through a joint venture.
BCA has also highlighted that demand for construction in 2022, which was $29.8 billion according to preliminary estimates. The figure falls within BCA’s forecast range for 2022 between $27 billion and $32 billion, and is similar to the $29.9 billion reported in 2021. The steady demand was mostly fueled by infrastructure and residential projects both in the private and public sectors.
The construction market in the public sector amounted to $17.9 billion in 2017 which was a slight improvement from $17.8 billion that was recorded in 2021. Demand was fueled by large projects like the Cross Island MRT Line (Phase 1), Jurong Region MRT Line as well as the Ministry of Healthcare’s (MOH) health facilities as well as new Build-to-Order (BTO) facilities.
Demand for construction in the private sector decreased by $12.1 billion by 2021 and $11.9 billion by 2022 in the face of “various negative economic risk factors” but the demand for residential and industrial construction projects continued to be resilient, according to BCA.
In 2023, the public sector contracts are likely to comprise around 60% of the construction demand that is between $16 billion to $29 billion. Demand from the public sector will be bolstered by a rise in the availability of Build-to-Order flats offered by HDB and the construction of institutional and industrial structures like water treatment facilities educational buildings, community clubs. Additionally the demand for civil engineering construction will continue to be boosted through MRT line construction as well as other infrastructure projects.
Demand for construction in the private sector is predicted to rise between $11 billion to $13 billion in 2023. Both industrial and residential construction demand is expected to be comparable to the previous year’s levels. Commercial construction demand is expected to grow, which is aided by the shifting of certain projects from 2022 until 2023, as well as the renovation of commercial buildings.
The total construction output, determined by the value of progress payments that are certified, is projected to grow from $30 billion to $33 billion by 2023, just a little higher than the $30.2 billion that was recorded for 2022 on the basis of preliminary data. BCA credits this to the steady growth in construction activity and a work that has been delayed by the Covid-19 epidemic from 2020.
In the near period, BCA expects total construction demand to rise between $25 billion to $32 billion annually from 2024 until 2027. Demand from the public sector is projected to be between $14 billion and $18 billion annually and the demand from private sectors is expected to be between $11 billion and $14 billion annually. The projection does not include those involved in the Changi Airport Terminal 5 development and the infrastructure associated with it and expanding two integrated resorts due to the lack of specifics like award dates and construction phasing for respective projects.